True/False questions

A particular stock is characterized by a negative beta, but a large standard deviation two times that of a broad-based market index. Due to this stock's substantial total risk, we expect its return to exceed that of a risk-free asset.

The fact that over 1/4 of all professionally managed stock mutual funds are able to outperform the S&P 500 in a typical year, is evidence against the semi-strong form of market efficiency.